Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 197.4 million, an increase of about 1.2% compared to HKD 195.1 million for the same period in 2023[5]. - The cost of sales increased by approximately HKD 17.8 million or 11.0% to approximately HKD 179.6 million for the six months ended June 30, 2024, compared to HKD 161.8 million for the same period in 2023[6]. - Gross profit decreased by approximately HKD 15.5 million or 46.5% to approximately HKD 17.8 million, with the overall gross margin declining from 17.0% to 9.0%[7]. - The group transitioned from a profit of approximately HKD 5,400,000 for the six months ending June 30, 2023, to a loss of approximately HKD 12,300,000 for the same period in 2024, primarily due to reduced gross margins on eyewear products[14]. - The net loss attributable to the company's owners for the period was HKD 12,250,000, compared to a profit of HKD 5,369,000 in the same period last year[45]. - The group reported a loss of approximately HKD 12,250,000 for the six months ended June 30, 2024, compared to a profit of HKD 5,369,000 in the same period of 2023[64]. - The company incurred a total comprehensive loss of HKD 16,180,000 for the six months ended June 30, 2024, compared to a total comprehensive income of HKD (2,253,000) in the same period of 2023[48]. Revenue Breakdown - Revenue from Italy for the six months ended June 30, 2024, was HKD 87,770,000, an increase of 46.8% compared to HKD 59,788,000 in the same period of 2023[56]. - Revenue from the United Kingdom was HKD 52,193,000, slightly down by 1.7% from HKD 53,079,000 in the previous year[56]. - Revenue from the United States decreased to HKD 6,930,000, down 34.5% from HKD 10,510,000 in the same period of 2023[56]. - Revenue from major customers contributing over 10% to total revenue includes Customer A at HKD 44,044,000, Customer B at HKD 31,849,000, Customer C at HKD 22,887,000, Customer D at HKD 16,165,000, and Customer E at HKD 18,490,000[58]. Expenses and Costs - Other income decreased to approximately HKD 3.0 million, down by HKD 600,000 due to reduced government subsidies from the Chinese government[8]. - Other gains and losses decreased to approximately HKD 3.5 million, down by HKD 2.9 million, primarily due to a milder depreciation of the Renminbi against the Hong Kong dollar[9]. - Selling and distribution expenses slightly decreased by approximately HKD 1.9 million or 26.0% to approximately HKD 5.4 million, mainly due to reduced advertising and promotional expenses[10]. - Administrative and other operating expenses increased by approximately HKD 2,300,000 or 8.2% to about HKD 30,500,000 for the six months ending June 30, 2024, primarily due to increased employee costs and rent for new leased properties[11]. - Financing costs decreased by approximately HKD 300,000 to about HKD 800,000 for the six months ending June 30, 2024, mainly due to reduced use of trade receivables factoring[12]. Assets and Liabilities - Total assets as of June 30, 2024, were approximately HKD 258,000,000, down from HKD 264,000,000 as of December 31, 2023, with net assets decreasing to approximately HKD 167,000,000[15]. - The current ratio decreased to approximately 2.7 times as of June 30, 2024, from about 3.1 times at the end of 2023, representing a reduction of approximately 12.9%[15]. - Cash and bank balances totaled approximately HKD 18,600,000 as of June 30, 2024, down from HKD 20,300,000 at the end of 2023, primarily due to cash used for property renovations and equipment purchases[16]. - The group had lease liabilities of approximately HKD 14,300,000 as of June 30, 2024, with a breakdown of liabilities due within one year at HKD 3,298,000[18]. - Total inventory as of June 30, 2024, was HKD 71,573,000, a slight decrease from HKD 74,764,000 as of December 31, 2023[67]. - Trade receivables as of June 30, 2024, amounted to HKD 114,161,000, up from HKD 109,067,000 as of December 31, 2023[68]. - Trade payables increased to HKD 58,108,000 from HKD 44,175,000 as of December 31, 2023, representing a 31.6% increase[71]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with all applicable provisions for the six months ending June 30, 2024[30]. - All directors confirmed compliance with the standard code for securities trading as of June 30, 2024[31]. - The company has a total issued share capital of 500,000,000 shares as of June 30, 2024[34]. - Major shareholders include Top Peak Holdings, which holds 270,952,000 shares, representing 54.19% of the company's equity[36]. - The beneficial ownership structure indicates that Mr. Guo Junhui and Mr. Guo Junyu each own 49% of Top Peak Holdings, while Mrs. Chen owns 2%[33]. - No other individuals, excluding directors and senior management, hold a 5% or greater interest in the company's issued share capital as of the report date[38]. - The company emphasizes high levels of corporate governance to protect shareholder interests and enhance corporate value[30]. Cash Flow and Financing - For the six months ended June 30, 2024, the company reported a net cash inflow from operating activities of HKD 1,721,000, a significant decrease from HKD 15,936,000 in the same period of 2023, representing an 89.2% decline[49]. - The company's cash and cash equivalents decreased by HKD 1,692,000 during the period, compared to an increase of HKD 5,091,000 in the previous year[49]. - Cash outflows from investing activities were HKD 1,026,000, a decrease from HKD 7,957,000 in the previous year, indicating improved cash management[49]. - On July 26, 2024, the company secured a new bank loan of RMB 9,500,000, which is to be repaid within one year, aimed at providing working capital[78]. Future Outlook - The company aims to maintain and enhance product appeal, reputation, and customer loyalty to improve future profitability[4]. - The company continues to explore and develop new business opportunities to diversify its revenue sources beyond its core eyewear business[4]. - The economic outlook remains uncertain, with inflation pressures in the Eurozone expected to rise to 4.8% in 2024, impacting consumer purchasing power[3].
恒发光学(01134) - 2024 - 中期财报